Huge Leap By Slater, Walker

Press, Volume CIX, Issue 32252, 21 March 1970, Page 18

Huge Leap By Slater, Walker

Slater, Walker Securities (Australia), Ltd, more than trebled, its profit in the latest year to. December 31, due largely to the acquisition of Drug Houses of Australia, Ltd.

Subject to audit, profit after tax and minority interests was $3,808,802, compared with $1,103,975 the year before and only $219,519 in the 18 months to December 31, 1967. The directors now forecast that, in the absence of unforseen circumstances, they expect to declare dividends of at least. 12J per cent for the current year. They paid an interim dividend of 4 per cent last year, and now recommend a final dividend of 6 per cent, making a total payout of $1,751,288 for the year to December 31, 1969. This compares with the 1968 dividend of 61 per cent (adjusted for the 1969 bonus issue). Earnings per share were up by 98 per cent after allowing for the bonus issue, and the value of assets per share rose by 29 per cent. STRONG BASE The directors believe that the company has now estab-, lished a strong base for future Australian expansion. With the formation of an investment bank and the company’s increasing interest in mining investment, the company would be able to expand faster in the next decade,they said in the annual re-j port They forecast a profit before taxation and minority interests of at least sl2m in

1970, compared with $5.6m last year. The acquisition of Drug Houses of Australia had been especially pleasing, the directors said. They estimated that if the company's figures had been included for a full 12 months in 1969, the pre-tax profit would have been at least $BOO,OOO higher. As well as the substantial increase in profit achieved in Drug Houses, Slater, Walker was able to reduce considerably the capital employed within the company, and used the release of cash to redeem the $14,538,137 worth of debentures issued to acquire Drug Houses. Further profits and cash reduction are expected this year.